Paylocity Holding Corporation (PCTY) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Paylocity Holding Corporation stock $190, price $173, upside +10.0%, quality 74 out of 100. Rating: fairly valued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $95.10 – $305.75 · fair‑value band $133.32 – $247.61 · the $173.15 price screens below the $190.47 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Paylocity Holding Corporation provides cloud-based human capital management, payroll software, and spend management solutions for the workforce in the United States.
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The company offers payroll solutions comprising payroll and tax services, global payroll, on-demand payment, and garnishments; human resources (HR) solutions consisting of human resources, employee self-service, workflows and documents, HR compliance dashboard, and HR edge; time and attendance, scheduling, and time collection; time and labor solutions, including time and attendance, scheduling, and time collection; and talent solutions, such as recruiting, onboarding, market pay, learning, performance, and compensation.
It also provides benefits solutions comprising benefit enrollment and updates, and third-party administrative solutions; employee experiences consisting of community, video, employee voice, recognition and rewards, modern workforce index, data insights, and reporting; and Paylocity for finance solutions, such as headcount planning, expense management, accounts payable automation, corporate cards, and guided procurement.
In addition, the company offers implementation and training, client services, and tax and regulatory services. It serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others.
The company also sells its products through sales representatives. Paylocity Holding Corporation was founded in 1997 and is headquartered in Schaumburg, Illinois.
Stock analysis
Paylocity Holding Corporation (PCTY) currently trades at $173.15, while our model-based Fair Value estimate is $190.47, so the stock looks roughly fairly valued today (gap 9.1%).
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Valuation
Bull case: the DCF Models group reads highest at a median of $262.14 per share, and 13 of the 24 models we run sit above the $173.15 price.
Bear case: the Economic Profit group reads lowest at $75.98, and 11 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $133.32 (bear) to $247.61 (bull), the price of $173.15 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 74/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Paylocity Holding Corporation reported revenue of $1.8B in FY2026 versus $853M in FY2022, a compound +20.1%/yr. Reported net income was $270M in FY2026, compounding +31.3%/yr from FY2022.
Key figures
Market cap $9.5B Mid · P/E ratio 33.6 · P/S ratio 5.23 · EPS (TTM) $5.15 · Net margin 15.4% · Return on equity 24.8% · Return on assets (EBIT) 5.4% (5-year average) · Operating margin 18.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 67 out of 100 (medium confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 3% below its 52-week high and 82% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at 10%, PCTY screens cheaper than that median.
Fair Value models
Bear$133.32Fair Value $190.47Bull$247.61
Price $173.15 · Upside +10.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($1.86 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 9 officers or directors sold shares worth $43.7M and none bought.
SaleSteven I SarowitzDirector, 10% owner19× since Aug 6, 2026: 200,000 shares, avg. $162.19$32.4MOct 30, 202610b5-1 plan
SaleSteven R BeauchampExecutive Chairman, Director3× since Aug 14, 2026: 45,000 shares, avg. $153.64$6.9MOct 15, 202610b5-1 plan
SaleAndrew CappotelliSr Vice President Operations8× since Nov 26, 2025: 5,559 shares, avg. $136.63$759,533Sep 4, 202610b5-1 plan
SaleCraig ConwayDirector3,145 shares at $156.80$493,136Aug 27, 2026
SaleKenneth B. RobinsonDirector800 shares at $158.41$126,728Aug 27, 2026
SaleRyan GlennChief Financial Officer4× since Nov 19, 2025: 9,395 shares, avg. $130.45$1.2MAug 19, 202610b5-1 plan
SaleJoshua ScuttSVP Chief Revenue Officer3× since Feb 19, 2026: 8,902 shares, avg. $130.85$1.2MAug 19, 2026
SaleNicholas RostVP CAO & Treasurer5× since Nov 19, 2025: 2,036 shares, avg. $125.81$256,142Aug 18, 202610b5-1 plan
SaleToby J. WilliamsPresident and CEO, Director2× since Feb 13, 2026: 20,000 shares, avg. $130.97$2.6MAug 14, 202610b5-1 plan
Plus 34 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+11.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+22.7%
Start year 2021 (pandemic). Over 10 years: +22.6% a year
Revenue growth 15 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+28.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+31.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+31.4%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.31.4% vs 44.5%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 22%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+5.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +2.7% a year for the price and +4.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Paylocity displays moderate moat signals from profitability but is held back by insufficient operational detail and limited category-specific public data.
Main risk: Generative AI automating HR and payroll tasks could reduce the number of employees needed at client companies, lowering Paylocity’s recurring revenue from its per-employee pricing model.
Bull case: By expanding into finance and spend management tools, Paylocity could offset any headcount reductions with new transaction-based revenue streams.
Bear case: If AI efficiencies lead to widespread client headcount cuts without sufficient new revenue from platform expansions, recurring revenue growth could slow significantly.
Paylocity keeps adding high-profile clients like the Philadelphia Eagles while expanding its New York operations to support more staff and services. At the same time it rolls out AI agents and marketplace tools to move beyond core payroll. Our models see the stock as undervalued, but the real test is whether these platform investments lift recurring revenue growth faster than they raise spending. Will the new offerings deliver clear operating leverage or mainly widen the gap between costs and results?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 628 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score74 · Top 25%
Fair Value upside+10.0% · Above median
Profitability
Return on equity (12 months)24.8% · Top 25%
Return on assets5.5% · Above median
Net margin (12 months)15.4% · Top 25%
Operating margin (12 months)18.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)10.7% · Above median
Balance sheet
Debt / equity0.07× · Above median
Valuation Multiplesvs Software - Application median · lower = cheaper
P/E (12 months)33.6× · Pricier than median
P/B7.76× · Priciest 25%
P/S (12 months)5.23× · Pricier than median
Price / free cash flow (fiscal year)19.1× · Pricier than median
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Is Paylocity Holding Corporation (PCTY) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $190.47 versus a price of $173.15, about +10% upside (fairly valued).
What is the fair value of PCTY?
Our model-based fair value for Paylocity Holding Corporation is $190.47 (as of Nov 8, 2026), built from audited fundamentals. The current price: $173.15.
What is the quality score of PCTY?
Paylocity Holding Corporation has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Paylocity Holding Corporation (PCTY)?
Our model-based price target is the fair value of $190.47 (as of Nov 8, 2026) from 24 valuation models. Cautious scenario $133.32, optimistic scenario $247.61. It is a calculation from audited fundamentals, not an analyst target.
What is the Paylocity Holding Corporation stock forecast for 2026?
Our models put fair value at $190.47, about +10% upside versus a price of $173.15 (fairly valued). Cautious scenario $133.32, optimistic scenario $247.61. The calculation is refreshed regularly with new filings.
What is the revenue of Paylocity Holding Corporation (PCTY)?
Paylocity Holding Corporation reported trailing-twelve-month revenue of about $1.8B (latest available figure, as of Nov 8, 2026).
What growth is priced into Paylocity Holding Corporation (PCTY)?
For today's price to be fair in a discounted-cash-flow model, Paylocity Holding Corporation would have to grow free cash flow by +5.1 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +22.8 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of PCTY use?
Our models discount Paylocity Holding Corporation at 8.5 %: a base by market capitalisation (mid), damped by beta 0.41, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Paylocity Holding Corporation that is +5.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Paylocity Holding Corporation (PCTY) delivered so far?
Over the past 5 years revenue at Paylocity Holding Corporation grew +22.8 % a year. The price currently implies free-cash-flow growth of +5.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Paylocity Holding Corporation (PCTY) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into Paylocity Holding Corporation (+5.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Paylocity Holding Corporation (PCTY)?
The free-cash-flow yield on the price is 5.24 %: that much free cash flow Paylocity Holding Corporation produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Paylocity Holding Corporation (PCTY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Paylocity Holding Corporation it is $190.47 per share (as of Nov 8, 2026), against a price of $173.15. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Paylocity Holding Corporation stock overvalued or undervalued in 2026?
As of Nov 8, 2026, PCTY trades below its calculated fair value: price $173.15, fair value $190.47, a gap of about +10% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PCTY?
No. The price is what the market pays today ($173.15); the fair value is what the company's own numbers justify ($190.47). For Paylocity Holding Corporation the two are $17.32 per share apart. That gap is exactly why we show both numbers side by side.
How much is Paylocity Holding Corporation worth?
The market values Paylocity Holding Corporation at about $9.5B (market capitalisation, as of Nov 8, 2026). Per share that is $173.15; our models calculate a fair value of $190.47 per share.
What do the bullish and bearish scenarios say about PCTY?
Our models span a range for Paylocity Holding Corporation: cautious scenario $133.32, base $190.47, optimistic $247.61 per share (as of Nov 8, 2026, price $173.15). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PCTY?
Paylocity Holding Corporation trades at a price-to-earnings ratio of 33.6 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $190.47 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 90.1. Other multiples: PEG 1.4, P/B 7.8, P/S 5.2, EV/EBITDA 21.3.
What is the PEG ratio of PCTY?
The PEG ratio of Paylocity Holding Corporation is 1.40 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Paylocity Holding Corporation (PCTY)?
Balance-sheet figures for Paylocity Holding Corporation (as of Nov 8, 2026): return on equity 24.8%, debt of 0.07 per unit of equity. They feed the Quality Score of 74/100, which measures business quality independently of the share price.
How far is PCTY from its 52-week high?
Paylocity Holding Corporation trades at $173.15, about 3% below its 52-week high of $177.67 and 82% above the low of $95.10 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $190.47 is for.
Which stocks are comparable to Paylocity Holding Corporation?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Paylocity Holding Corporation stock attractive at the current price?
The data as of Nov 8, 2026: price $173.15, calculated fair value $190.47 (+10%), Quality Score 74/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PCTY calculated?
We run Paylocity Holding Corporation through 24 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $190.47 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Paylocity Holding Corporation currently trades 9% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Paylocity Holding Corporation (PCTY)?
The closing price on Nov 6, 2026 was $173.15. Our model-based fair value is $190.47, about +10% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Paylocity Holding Corporation right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($133.32 to $247.61) leaves room in how you read the outcome.
Key figures of Paylocity Holding Corporation
How large is the market capitalisation of Paylocity Holding Corporation (PCTY)?
The market capitalisation of Paylocity Holding Corporation is $9.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Paylocity Holding Corporation (PCTY)?
The price-to-sales ratio of Paylocity Holding Corporation is 5.23 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Paylocity Holding Corporation (PCTY)?
Earnings per share at Paylocity Holding Corporation are $5.15 (price ÷ EPS = P/E 33.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Paylocity Holding Corporation (PCTY)?
The net margin of Paylocity Holding Corporation is 15.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Paylocity Holding Corporation (PCTY)?
The return on equity (ROE) of Paylocity Holding Corporation is 24.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Paylocity Holding Corporation (PCTY)?
On an EBIT basis the return on assets of Paylocity Holding Corporation is 5.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Paylocity Holding Corporation (PCTY)?
The operating margin of Paylocity Holding Corporation is 18.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Paylocity Holding Corporation (PCTY)?
Revenue at Paylocity Holding Corporation is growing +10.7% versus a year earlier (3y avg +14.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Paylocity Holding Corporation (PCTY)?
Earnings per share at Paylocity Holding Corporation are growing +24.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Paylocity Holding Corporation (PCTY) hold?
Paylocity Holding Corporation holds more cash than debt, $148M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Some data
Nov 8, 2026